The Minister of State for Energy in charge of Petroleum, Mr. H. Odein Ajumogobia (SAN) says that the decision of the federal government to end payment of cash calls and encourage sourcing of private financing for projects in the oil and gas sector was informed by the need to sanitise the industry. The Minister gave this insight during an interview in his office in Abuja.

Mr. Ajumogobia explained that going by the work programme that has been designed for 2008, the oil and gas industry would require about 15 billion dollars funding, adding however that only 4.5 billion dollars has been proposed in the budget.

He said that with this scenario, there already exists a funding gap of about 11 billion dollars, which he added was likely to increase over time. The NNPC will be expected to raise funds for its operations after the on-going reforms to enable it grow and meet its obligations.